← From the Ground Up
Loading summary
Transcript48 lines
- [00:00]
Qui Slobert
Foreign.
- [00:08]
Kathleen Koch
Welcome to Growth Without Growing Pains. My name is Kathleen Koch, moderator for Ink Custom Studio. Thank you for joining our discussion today in partnership with Square. Every small business wants to grow, right? I mean, we've all heard the saying, if you're not growing, you're dying. But there can be so many challenges, especially for those in brick and mortar retail. Challenges like cash flow, laborer shortages, foot traffic issues. So we thought we would bring together voices of experience to understand and have overcome those roadblocks to success. So we'll also be diving into a new Future of Commerce report. It was just completed by Square and they surveyed the business leaders and consumers all around the world. And its findings on the retail, restaurant and beauty sectors are just fascinating. So joining me today are Kathryn Cullen, vice president of industry and consumer insights for the National Retail Federation, Elizabeth Emery, founder of Black Lion Chicago, co founder of the Hive Principle and the Chicago Brand Museum, and chef Qui Slobert, founder of Charles Pan Fried Chicken. Welcome everyone.
- [01:29]
Qui Slobert
Pleasure.
- [01:30]
Elizabeth Emery
Thank you.
- [01:31]
Kathryn Cullen
Glad to be here.
- [01:32]
Kathleen Koch
So Elizabeth and Qui, you both have pretty remarkable growth stories. You've managed to stay rooted in your communities as you grew and tested new things. Now, Elizabeth, you have gone from a large scale, a multi merchant operation in North Carolina to a boutique 3 day week model in Chicago. And Quee, your restaurant went from one to now 33 locations in New York City. Well, first of all, congratulations to both of you. How did you do it? What was your secret sauce?
- [02:06]
Elizabeth Emery
So for us, our secret sauce was really about capturing that entrepreneurial spirit that our company was originally founded on from our, from our family when they founded our company many years ago. And really trying to create a unique space in our community where we're not only a retail store, but we're able to be a positive place in the community that allows for people to connect.
- [02:33]
Qui Slobert
And I kind of agree with that. Chef Charles Gabriel started Charles pan fried chicken 50 years ago. Like literally this man did it by himself. During COVID all his stores shut down. And this is where I stepped in. And we opened up four restaurants in 13 months, literally. And we had to sell one. So now we have three thriving in New York City. What we did was become a part of the community. We wasn't just a restaurant on the block, we was the block. We are 125th Street, 145th and 72nd Street. And to thrive and survive, you have to become one with your community.
- [03:08]
Kathleen Koch
You know, one of the key findings of Square's Future of Commerce report is that businesses are upbeat. 78% said that they felt more optimistic about the future of their company now as compared to 12 months ago. Does that ring true to the two of you?
- [03:25]
Elizabeth Emery
It absolutely rings true to us at Black Lion. One of the things that we're seeing is that there's a lot of trepidation right now around what's going to happen with retail. The fact that people are shifting to online commerce. But what we're finding is that people still want to be able to see things in the store. They want to be able to sit on furniture in the context of our, our store. You know, they want to be able to pick items out and have that sense of immediate gratification which is what we were founded on originally, you know, in our original concept. And so we're seeing that, you know, while retail is soft in different parts of Chicago, we're seeing increasing in, you know, the number of people purchasing homes. We're seeing an increase in our visitor data in the city through our tourism boards and through to Chicago. And so we're really optimistic about it. We think that the landscape is just changing right now. It's not necessarily that retail is going away. It's just consumer behavior and how people are interacting with brands and the fact that people are looking for more authentic experiences beyond what maybe has worked in the past in the retail setting.
- [04:41]
Kathleen Koch
What about you, Kwei?
- [04:43]
Qui Slobert
Yeah, for sure. As the world become more digital now these days and technology is coming, but I'm in the business of food. I'm in the business of you can taste it, you love it, you like it. But with the digital time frame of this world is making it easier for them to get some of our food. So it actually helps out our restaurant. And to be in this business and restaurant business, you have to be like optimistic about everything. Everything has to be at sunshine at the end of the rainbow pot of gold is there. So it just come with the entrepreneur, entrepreneurial spirit to be positive, to have a better outlook on it no matter what.
- [05:17]
Kathleen Koch
Catherine, how typical are these stories when it comes to small brick and mortar retail businesses in the US Today?
- [05:24]
Kathryn Cullen
You know, we hear a lot of these types of stories at the National Retail Federation. We work with retailers of all sizes. But at the core, we believe that small businesses are not only the strength of their community, but they're the strength of the retail industry. About 98% of retailers actually employ fewer than 50 employees and they support over 13 million American jobs. So telling the stories of small businesses, telling the story of their growth, seeing how small businesses evolve into mid sized businesses and even larger businesses is a core of what we do. And I love the hearing, the focus on brick and mortar, because we've been saying for a long time, and we hear from our retailers, people like shopping in stores. Doesn't mean they don't like shopping online as well. But to Elizabeth's point, they like to see products. They like to experience them. They sometimes want to talk to someone, as crazy as that is in today's world, and particularly with younger generations, Gen Z and even millennials, they. They like the store experience. It is something different from all the digital interactions they have every day. They certainly have different expectations than they used to have, but we are seeing a lot of strength and power from brick and mortar.
- [06:47]
Kathleen Koch
So I'd like to dive a little deeper into your stories. Cuy Charles Pan Fried Chicken was a legendary establishment, as you mentioned, founded by your idol, chef Charles Gabriel. You. You talked about how it almost didn't open, reopen after the COVID closures. And you were determined, though, not only to keep it running, but to actually refresh it and help it grow. So what was your vision here?
- [07:11]
Qui Slobert
My vision was to take the authenticness of Chip Charles Gabriel and bring it to a newer pattern, a newer version of life, have these kids attach themselves to it just to say, hey, listen, let's take this, keep the classicness of it and make it fresh and funky. And that's just what I did. I made it fresh and funky for people that enjoy all ages.
- [07:30]
Kathleen Koch
Now, Elizabeth, now, your parents founded Black Lion Home decor in Charlotte, North Carolina, back in the 90s, and when they retired, you decided to carry on their legacy in Chicago. So what were your goals when it came to preserving the roots of the business, but, you know, and then maybe doing things a bit differently to modernize and grow.
- [07:52]
Elizabeth Emery
Yeah. My family is obviously super entrepreneurial, so it definitely runs deep. We started many years ago, and when they started the business, it was pretty cutting edge. They wanted to take this idea of almost like a wholesale gift market and bring that to a retail platform.
- [08:15]
Kathryn Cullen
Right.
- [08:16]
Elizabeth Emery
To bring that to a space where everyday consumers would be able to walk into a store and find anything imaginable for their home. And so we wanted to keep that element of surprise, that element of immediate gratification and moving our business to Chicago. But they're at a time in their lives where they wanted to start to wind things down. You know, we've made it through Covid, had the absolute best years, and they've made it through many, many decades now, I guess, of, you know, of all kinds of things happening in the economy. And so we wanted to really create a unique space in Chicago that that was built on the foundation of our original brand, the Chicago Store. We purposely chose an opportunity zone to place the store. So we're in an area where there it is a bit of a retail desert at this point. There's not a lot of places to go for home decor, to go for great gifts near our neighborhoods and surrounding communities. And so we wanted to create a really unique space that not only celebrated the heritage and the history of the area that we're in, we're in the original Cadillac building, which is an iconic building in Chicago. Original intent was a showroom. It was originally a building that, you know, was family owned and founded. And so we wanted to bring that same idea back, celebrate the history of, but also give people an experience, you know, that we built many, many years in Charlotte in the Chicago area and access to really great goods that they're not able to get access to locally.
- [09:54]
Kathleen Koch
So, Queen Elizabeth, what would you say have been your biggest challenges along the way and how did you maintain your authenticity and connection to the community?
- [10:06]
Qui Slobert
Well, what we do here at Charles Camp Fried Chicken, we do what Chef Charles did back in the days. We keep our ear to the ground. We are in schools, we are teaching kids how to cook. Because Charles by chicken is just the place you come and eat. We are the community. We have programs called Cooking with Shirley's Son, where we are in the community consistently. We give away free food to the hungry, to the needy, to whoever needs. Every month, toy drives. We give away food, we give away toys. We just are there when we are needed. We're not just a restaurant. We are safe haven for Columbia campus students. Any problem, they come to my restaurant. They feel safe. So we don't just, hey, come and eat this food and leave. No, this is who we are. We are part of the community. So when you walk through, you're going to say hello, you're going to see what's up. Understand Char been doing for 50 years. So the grandmothers he fed. The mothers he's fed now they're children, they're coming up and he's feeding too. So to say a legacy, a part of the community and keep it going on. We're a part. We. We're the bloodline. We fed their grandmothers, we fed their mothers. Now we feeding them. And we are more than just hay eat this. We are apart with going to schools. We're teaching kids and that's the best way you got to do it. Just show yourself and say, hey, listen, we did it. You can do it too. And they feel more attached.
- [11:15]
Kathleen Koch
What about you, Elizabeth?
- [11:18]
Elizabeth Emery
We have really focused on creating a store that not only is, you know, thoughtful in terms of the products that we're selecting for people, but we really try to curate new experiences all the time. We wanted to create a place that would be somewhere where anyone from any walk of life, from any demographic, you know, economic situation, can walk into our store and find something beautiful that reflects their personal style. And so for us, it's about curating amazing finds for people that reflect our communities. Not just going into a showroom and picking out the next new trend, but really trying to find unique pieces that we feel capture, you know, what people are going to care about or capture people's personality and their style to really connect with them.
- [12:11]
Kathleen Koch
It's very cool. So, Katherine, what are you seeing recently in the industry? What are common growth levers that businesses owners are looking to and how are they doing it in ways that remain true to their founding missions?
- [12:25]
Kathryn Cullen
Yeah, absolutely. So it's a core part of what we do is tell a story of what's going on in the industry and provide information to businesses of all sizes so they can understand the context in which their customers are operating. You know, I do have to acknowledge that there is a lot of uncertainty in the industry, but we do see a lot of optimism still. That said, people are both businesses and consumers are navigating uncertainty, and that means they're having to be careful about some growth levers and maybe leaning into some others that they wouldn't have explored before. We're seeing a lot of innovation with small businesses right now as they look at how their customers might be feeling a little more cautious about spending. We've seen some who are expanding services, for example, who are saying, you know, you may not want to buy everything new right now. Let me teach you how to repair what you've bought from us previously. And again, fostering that community, tapping into what their customers really need, really helping to educate their customers on alternatives if they're feeling a little price punched in some other areas or some products are less available given what's going on. So in all of this uncertainty, people are, of course thinking innovatively, thinking very creatively. And we saw this during COVID I saw a lot of small businesses who started same day delivery or local delivery, food and restaurant, but shoe stores figuring out what their customers needed and how to get there. So while there's a lot going on, I do think that challenges do create opportunities and small Businesses have shown they're very tough and very connected to what their communities want.
- [14:13]
Kathleen Koch
Elizabeth and Qui, let's dig a little bit deeper into the other ways you've grown and also how technology has helped you shape that path. Quee along with modernizing, I know the look and the feel of Charles Pan Fried Chicken. You've also up level the operations and as you mentioned expanded to three locations. So I'd like to know how did technology play a role in helping you get there? Interestingly, the Square future of commerce report found that 75% of restaurants believe that AI or automation will improve tasks like marketing and payments, inventory management and more.
- [14:57]
Qui Slobert
So fortunately for my business, I feel like human beings will always be hands on when it comes to cooking food and all that. But let's build this right? It's experience you give to your guests. It's a new age. After Covid, everyone want that connection want to feel and, and how do you actually get the people to feel what you feel? Ease Ease is one with all the technology right now, everything has to be easier for them to do. So our age group that we used to have a restaurant at Charles Grandpa Chicken has gone up. They're a little bit older now, so technology is not as advanced. They can use it as they once were. So if it's easy and simple, it's helpful. Now me, I am a fan of Marvel. Iron man is my favorite superhero and he has Jarvis, he has AI who helps him out with the technology to help him become the best superhero he possibly could be. Now my job is a square. I started using square from the very beginning when we rebranded Charles Pan Fried Chicken and it helped me expand to four restaurants in 13 months. Once again, if you can look at your phone at any given moment, see your numbers, see what sells, then you know what sells your community. Literally just before we got on this chat, I was able to send a party out. Once again, I'm somewhere there elsewhere and they did not have to leave their home. They could click a button from me just saying, hey, I want to send this on square. You get a square app, you can pay it as easy as possible. And two, touch of a button is easy to do. So basically if technology helps your customers do things easily, simply they will come back to you and that will help your growth for sure.
- [16:32]
Kathleen Koch
It's very cool. Elizabeth, I know you expanded Black lion to sell over 80, sorry, 180 brands and over 10 thousands. Excuse me, I know there is no way you can manage that all with pen and paper, right? So tell us about the role of technology in your growth story. And by the way, Square's report found that in retail too, a huge number of businesses, some 93%, are also using automation to save time on things like marketing, inventory management and more.
- [17:08]
Elizabeth Emery
So in our previous store we used a proprietary point of sale system that was based on an antique mall system platform, which worked really well for us because we were multi merchant at that point. But over the past, you know, couple of years technology has really grown and we started doing a little bit of research to figure out, you know, we knew going into our Chicago store that we wanted to have a three day a week or, or four day a week at the time model down from our seven day a week model that we had previously. And knowing that we were going to be managing all of our own inventory ourselves, we started looking into what available platforms there were and we started researching Square and absolutely fell in love with the fact that we would not only be able to manage the inventory, but if we wanted to at any point, you know, bring this multi purchase concept that we had back into the mix, it would give us the flexibility to do that, but also give us the flexibility to be able to understand, you know, our categories that we were selling on a deeper level, you know, how different brands that we're bringing into the store were performing and manage everything visually, which we weren't able to do previously. And it also integrates, you know, with our QuickBooks, allows us to do payroll. And so all of the things that used to take multiple people and multiple roles and a lot of overhead to manage are now being managed out of one platform, which is game changing for us. So we have absolutely loved working with Square and it's become really, we wouldn't be able to manage our business without it at this point because we have such a small staff. So we do rely on a lot of the heavy lifting and the automation to help us, you know, conduct our day to day business and keep our team lean.
- [19:00]
Kathleen Koch
Katherine, what are you seeing here? Are there any new technologies emerging that are helping businesses get to the next level more quickly and efficiently?
- [19:11]
Kathryn Cullen
Certainly. Well, we've touched on a lot of them in some aspects. I think you can't have this conversation without talking about AI. And one of the things that is interesting about AI and the way it's being rolled out is, is that there's so many different applications, there's so many free offerings, there's so many different ways to integrate it into your marketing, into your business, that it does have the capability and the potential to Take a lot off of someone's plate to let you do more with less, which can be really critical. And we're seeing certainly the applications for air, you know, seem endless at this point. I'm sure we'll get a little bit of a course correction at one point and then social commerce continuing to be a really, really big thing. But I did want to echo a little bit what Chuck said which is, you know, technology is a tool and you have to keep your eye on what problem it's solving. And that's a common mistake we see is that people just focus on the technology as this as the end all and be all as the goal instead as the way to address a problem. Whether it's better marketing, better customer connections. And when I talk about technology, whether it's to a small business or a large business, I always go back to a quote I heard from Panera's leadership which was that people, they were rolling out a bunch of self checkout kiosks and they said people don't come to Panera for the self checkout technology. They come for the food and a seamless experience and they won't come back if it's frustrating technology. And so you always have to weigh that when you're thinking about an investment. Is it, is it really solving a problem? Is it creating a more seamless connection? Is it getting me further or is it going to turn someone away? So I just like to give that caution when we think about all the options out there for businesses small and large.
- [21:14]
Qui Slobert
And she's right, she's absolutely right for chocolate and fried chicken. It checks all those boxes just may be easier for me. This make it easier for my employees, make it easier for our clientele. And yes, I can pay. We're a small business, we have three restaurants, we have 75 employees. I was able to do payroll within 40 minutes with ease. Everyone's getting paid consistently. I was able to close out a party and they would simply just press two buttons and they paid us a food will come to them on time. So yes, actually Square has helped us out tremendously. With all those boxes checked. Yeah, we can check them.
- [21:47]
Kathleen Koch
Elizabeth, I'm curious how you have used business data and insights to determine, you know, how you'd be able to make that shift to a three day model.
- [21:57]
Elizabeth Emery
Yeah, for us, the real time data, being able to log into our computer at any minute and know exactly where we stand, understanding time of day, understanding frequency of our repeat customers versus new customers, all of those things have really helped us be able to pinpoint you know, what days do we believe are the best performing days? When we open in Chicago, we started with four days and we've been able to double our business in a three day, you know, scaling back to three days. So we have found that the seven day model doesn't necessarily have to work for every single business anymore. We found that if you communicate to your customers and you give them a great experience and you tell them these are the days that we're going to be available, they are willing to come, the demand is there. It's just about communicating with people and letting them know, you know, we're here. Or if we're not available on our, you know, regular schedule, here's the days that we're available by appointment and we're happy to meet with you. And we've also found that giving customers that one on one time and being able to work with them directly, you know, is a completely different experience than just walking into any other regular retail store where they're not getting that attention.
- [23:19]
Kathleen Koch
Wow, that's really amazing. So cui how has data played a role in informing your decisions, say from whether it's the day to day or your next growth move?
- [23:31]
Qui Slobert
We could easily go onto your phone, your computer, your laptop and pull up your square cells. You can see when your volume is going to happen. That helps me actually with labor. Normally, restaurants, you're afraid of what's going on, you're not sure about the busyness and you just staff and then you lose money. I can go on square and see my past weeks, my past years, my past month of where the spike comes in and I can actually accordingly have people come staggering which save money at the end of the day. That's what the bottom line is. And let's build this right. You can look at any time, any given moment where your sales are at through the course of the day and you can simply cut from home. You can see the trends. So if you can follow the trends, anybody that grows plants, if you water your plants, you pay attention to your plants, your plants will grow. If you water your money and understand that, you watch it, you look at it through square, through your apps, or no matter what you use, it will grow. So square helps me maintain and watch it so I can make sure it grows.
- [24:28]
Kathleen Koch
So Catherine, what is your advice here? Because I think sometimes the amount of information and insights at a business owner's fingertips can be overwhelming. So how do they make sure they're looking at the right metrics to inform their decisions?
- [24:45]
Kathryn Cullen
Yes, I mean it's not just business owners. I think everyone has so much information right now at our fingertips and it's a process we all have to go through every day. But when you think about your business, when you think about which metrics to track, you know, certainly there's a lot of great internal systems that give you KPIs on how your customers are doing, on your churn rate, on your busy times that can help you make some of those day to day decisions or some of those expansion decisions. Again, it's keeping focused on what problem you're trying to solve and making sure that you're tracking the metrics that align with that problem and kind of filtering out the noise. That said, one common mistake we also see people making though, is forgetting to step out and look at the bigger picture. So whether it's talking to other businesses in your community, what they're seeing, trends, they're seeing paying attention to broader economic or industry trends. You know, what's going on globally may not seem like it affects your customers, but it does. It affects how they think and how they feel, which is then what they're bringing when they're coming to shop with you. So we always remind people, big or small, whether they're at a merchant, at a large retailer, they're starting their own business to think about taking that time and carving that time out to step out. And the last thing I would say is that we are seeing this trend of not just measuring profit and loss, but also thinking about kind of the fifth wall. What are those other things that add a special sauce to your business? Is it? How are you measuring the customer experience? How are you measuring your sustainability goals? How are you measuring your social presence and thinking about all of those holistically and not, you know, as much as we pay attention to the bottom line, remembering that that's not the only metric to pay attention to.
- [26:43]
Kathleen Koch
So Qui and Elizabeth, I know we've talked a lot already about maintaining the sense of connection with your customers. So how do you see the role of community and that vital connection evolving as the two of you continue to grow? Maybe que first.
- [27:01]
Qui Slobert
All right, so piggybacking off of what Katherine said. Square allows my customers to connect with me. My social medias are there, we have all of them. But Square actually have my guests text me, email me, and I can do the same right back to them. So their input, it's heavily taken into consideration of what they want, how they want it, what they enjoyed. So that's the community aspect. If they are a party of the community, once Again, we're not in the community. We're part of the community. So listen, and having that ear and having that ease that your guests can actually text you when you're not around. I'm bouncing all around Manhattan, so they can't really just hold me down and catch me. So they'll text me on Square, they'll email me on Square, and we'll literally have a conversation about what they think and what they enjoy in the experience. So that is the bottom line, making sure that they're happy. And they could do that simply just by actually texting, go on a Square app and just say, hey, I enjoy today. But this is that everybody have an input, everybody has an opinion. You know, you take it as you go. But once again, if you listen to your people so they can enjoy and understand your sole purpose of being in the industry, of take care of them. So I think that's a great help. I think that's it. Being a part of community, not just in the community, is what we stand for and have that extra help. Where Square, you can analyze anything when it comes to number. For restaurants, it's inventory, labor, numbers, that. That's what it is. Vendors. Paying your vendors off my plate. Square just does that for me. Ordering square actually breaks it down to what I need for the specific date is the data that you choose to. Like she said, what you want to watch and look at, but all your tools and utility belt that square has, you wrap it around you and it's there. So the easy is for me, easier is for me to run my business, easier for me to take care of my community, my employees. And that's where the growth happens.
- [28:49]
Kathleen Koch
So, Elizabeth, I saw you nodding. What about you?
- [28:52]
Elizabeth Emery
I couldn't agree more. Our community is absolutely the heartbeat of our brand. Without our community and their support, we wouldn't exist. You know, they took a huge chance on us, and we took a huge chance going into an area that really had no retail around us. So, you know, without our customers, we just wouldn't be here. I think one of the things that we really try to focus on is quality over quantity. You know, a lot of people are pushing brands and businesses to try to grow these huge social media followings. And the way I look at it is I would rather have 10 loyal followers who absolutely love our brand and want to tell everybody about our brand that than 10 million people who've never been to the store. And I think that that's something really important for small businesses to keep in mind. It's not always about trying to get the most followers or to get the most attention. It's about building a relationship with people and building trust and loyalty and people will keep coming back for that because they don't get that in so many settings.
- [30:01]
Kathleen Koch
Katherine, as we wrap, what are some of the ways that you're seeing businesses keep strong community connections? They grow. I thought it was fascinating when it comes to the online connection. I mean Que touched on this, but the the Square Future of Commerce report found that most customers, 63% of them in fact, still prefer an old fashioned email. Who knew?
- [30:25]
Kathryn Cullen
Yes, email marketing is still strong. I mean actually direct mail has had a little bit or a little bit has had a effect for certain businesses as well as any parent knows when they get some of the toy catalogs in the mail. It is more effective for my children than a digital ad. But I think email, particularly right now with everything going on with search and AI summaries of search and email may be the more direct way to get to your customer than some of the other digital aspects that are out there. So certainly don't overlook that the right social community and you know, not to Elizabeth's point, but the quality of your followers and community and how often you're able to tap into that. And then I also think that most successful retail businesses, the leadership, whether they're small or large, spend some time in the store, spend some time talking to customers. And I always see, you know, and I'm always astounded and shouldn't be, but large retail CEOs who are out helping customers take their bags to this, to their cars, talking to them, helping them navigate the store, those are leaders who are connected to their community who are out there, not just their community of customers but also their community of employees. And so they see the pain points, they see the frustrations, they see if the idea was execute in the right way and they see what's authentic. And I think that that old fashioned in person interaction is really hard to replicate and you need that. In addition, all the digital tools.
- [32:10]
Kathleen Koch
Thank you all so much for those terrific insights. You know what strikes me is how each of you managed to find success while remaining true to your core values. But at the same time you were nimble enough to experiment with new approaches. So Elizabeth Quigg, Catherine, thank you for joining me today for pulling back the curtain and sharing your secrets to growth and success. It's really been fascinating.
- [32:37]
Qui Slobert
Thanks for having me. Seriously.
- [32:41]
Kathleen Koch
So if you watching want to rewatch any portion of this session, it will be available on inc.com so I'm Kathleen Koch. On behalf of Inc and Square, thanks for watching Panoply.